In 3-3 vote, EDA nixes $2,500 contribution

Published August 18, 2011 at 5:38 pm

The Elk River Economic Development Authority (EDA) considered giving $2,500 to the Initiative Foundation, but a motion to this effect failed on a 3-3 vote Aug. 8.
EDA Commissioner Jerry Gumphrey made the motion for the contribution, citing the good that has come from the support of the Initiative Foundation in the Elk River community. It was seconded by EDA Commissioner Pat Dwyer, but opponents argued against giving up money as the city heads into a major branding and marketing effort.
No one questioned the good the Initiative Foundation does, but EDA Commissioner Paul Motin said Elk River will continue to benefit from the foundation whether it contributes or not.
EDA Chair Ron Touchette, EDA Commissioner Dan Tveite and Motin cautioned spending money before knowing what it will take to pull off the EDA’s own initatives in the coming year.
The Initiative Foundation requested $2,500. The EDA has contributed to the foundation in the past but backed away in 2007 when a request for committing to multiple contributions over a period of years seemed to overstep its authority.
The Initiative Foundation contributed $6,500 during the past two years to cover the cost of training and to help with getting the branding effort up and running.